A team of economic and oil experts has developed a proposal to rescue the Venezuelan economy, according to economist Gustavo García, former professor at the Institute of Advanced Studies in Administration (IESA) and former official at the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF).

The expert spoke about the initiative during the discussion “Oil Fiscal Policy and Growth for Venezuela,” held virtually by the Ideas for Venezuela Group, led by engineer Elías Matta.

The project’s main objective is “the revitalization of the oil sector by attracting private investment and implementing profound tax reform. A team of economic and oil experts has developed the project.”

“This achievement, combined with average economic growth of 10 % annually for 15 years, would allow the nation to recover its 2013 GDP level,” García stated, adding that the oil sector will be the driving force behind this growth, emphasizing “competitive advantages such as low extraction costs and an existing infrastructure that only requires repair and modernization.”

According to the economist, the goal is to achieve a production of 4 million barrels per day within 10 years. To achieve this, it is necessary to open the sector to 100 % private investment, “eliminating the mandatory partnership with PDVSA. Incentives such as accelerated depreciation and amortization are proposed as key tools for early investment recovery in a high-risk environment,” García emphasized.

On the other hand, he argued that the State should prioritize investment in human capital, “delegating operational recovery and investment in the oil sector to global private capital.”

This rescue plan for the Venezuelan economy will lay the foundation for sustained growth, the massive creation of formal employment, and the return of Venezuelan talent.

The goal is to publicly present the plan in the coming months after reaching a consensus.

M.Pino

Source: elimpulso

(Reference image source: Inside Dreamatorium on Unsplash)

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